Many disputes between landlords and tenants – some ending in court action – could be avoided by the use of professional inventories, it’s been claimed.
“An inventory is a vital part of the letting process because it establishes the condition of a property at the beginning and at the end of a tenancy” says Daniel Evans, chair of the Association of Independent Inventory Clerks.
“If the inventory contains omissions or is lacking in the necessary detail, the landlord or agent might find it very difficult to prove that deterioration has been the fault of the tenant.
“It’s not merely a list of items owned by the landlord but included in the property, the inventory should contain detailed information about every aspect of a property including standards of décor, fixtures and fittings, all contents, the garden and any outbuildings.
“Observations on condition are backed up with photographs or video so at the end of a tenancy, accurate assessments can be made about damage and cleaning issues that might be chargeable to the tenant.
“And the tenant is much more likely to trust the process if it can be demonstrated from the outset that the inventory clerk is independent of the landlord or agent.”
The inventory – sometimes known as a check-in report – must be agreed and signed off by the tenant and requires images of flaws in the property before the tenant moves in. The size of stains or marks can be shown by including a measuring rule or even a hand.
Evans continues: “Without these indicators, there will be no way of knowing whether there has been further deterioration by the time the tenant comes to check out.
“That could be caused by reasonable wear and tear, but if there has been further damage caused deliberately or by negligence, the inventory is the only means of establishing that fact.”
Some three per cent of tenancies end in dispute over the return of deposits, usually regarding cleaning or damage.
According to The Dispute Service its Insured Deposit Scheme received 15,116 dispute applications in 2020-21, while its Custodial Scheme adjudicated on 1,660.
But although only a comparatively small number of tenancies end in dispute, it’s in the interest of the landlord or agent to do everything they can to reduce the chances of disagreement over deductions.
“Top of the list should be an impartial inventory. If landlords and agents do this, everybody knows where they stand from Day One” Evans concludes.
“If landlords or agents don’t have an inventory or what they do have is incomplete, they are immediately on the back foot in any negotiation when the tenancy ends.”